Why is the Sydney Airport (ASX:SYD) share price worth keeping an eye on?

Will Sydney Airport shares take flight in the next month?

The Sydney Airport (ASX: SYD) share price is one to watch in the coming month as its potential takeover deal unfolds.

Shares in the company are currently swapping hands at $8.69, down 0.12%. In the past month, the Sydney Airport share price has gained just over 1%.

Let's take a look at what's happening with the company lately.

Man in suit looks through binoculars in front of a control tower at an airport.

Image source: Getty Images

Takeover decision pending

Investors are taking a keen interest in Sydney Airport shares lately.

As my Foolish colleague Sebastian reported, Sydney Airport was in the top three most traded S&P/ASX 200 Index (ASX: XJO) shares by volume on Friday when 11 million shares changed hands. At the time of writing, 12.34 million shares have been traded so far today.

In the next few weeks, Sydney Airport's share price could be impacted by a pending decision on the Sydney Aviation Alliance's proposed $23.6 billion acquisition of the company. Sydney Aviation Alliance is a consortium of investors including Global Infrastructure Partners, AustralianSuper, IFM Investors, and QSuper.

Shareholders are due to vote on the shareholder offer at a meeting on Thursday 3 February. News that the Foreign Investment Review Board has no objection to the takeover saw the Sydney Airport share price lift in late December.

It was also boosted after the Australian Competition and Consumer Commission and the European Commission gave their approval of the takeover deal on 9 December. Sydney Airport shares gained nearly 3% on the day.

All regulatory conditions for the acquisition have now been met. However, shareholder and court approval are still required.

The Sydney Airport board has recommended investors vote in favour of the $8.75 per share deal in the absence of a superior proposal.

Sydney Airport was in the top 5 best ASX 200 travel shares of 2021, gaining 35.41% for the calendar year. The big movement took place in July when news of the takeover came to light. Shares in the company gained nearly 34% between market close on 2 July and 5 July.

Share price snap shot

The Sydney Airport share price has surged nearly 38% in the past 12 months, well outperforming the  S&P/ASX 200 Index (ASX: XJO)'s gain of around 10%.

Since close of trade on New Year's Eve, the Sydney Airport share price has stayed in the green, climbing from $8.68 to its current price of $8.69.

Sydney Airport has a market capitalisation of around $23.5 billion based on the current share price.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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